Tesla Organizational Structure: divisional and flexible

Tesla is a unique company in many ways and this uniqueness also extends to its organizational culture. Specifically, “Tesla, unlike most companies its size, doesn’t have any known management structure. There’s no organizational chart or public list of senior leaders.”[1] Nevertheless, Tesla organizational structure can be characterized as divisional.

As it is illustrated in figure below, Tesla organizational structure comprises a number of divisions such as energy, engineering and production, HR and communications, legal and finance, sales and software. Each division is led by several vice presidents, except software division, which is led by 1 vice president and Director of Artificial Intelligence. Tesla benefits from divisional organizational structure through less bureaucracy compared to many other companies of similar sizes.  Divisional organizational structure also helps the electric automaker to increase the speed of communication among different layers of management with positive implications on decision making and flexibility of the business.

Tesla Organizational Structure

 

Tesla Organizational Structure

The current pattern of Tesla organizational structure illustrated above is a result of recent management changes in the company.  Specifically, following the departure of Jon McNeill, Tesla’s president of global sales, marketing and delivery and service to join ride-hailing service Lyft Inc. in February 2018, Tesla’s sales division started directly reporting to CEO Elon Musk.[2]

Tesla organizational structure is going through further considerable changes. CEO Elon Musk is “flattening the management structure to improve communication, combining functions where sensible and trimming activities that are not vital to the success”[3] of Tesla mission.

Tesla Inc. Report contains a full analysis of Tesla organizational structure. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Tesla. Moreover, the report contains analyses of Tesla leadership, business strategy and organizational culture. The report also comprises discussions of Tesla marketing strategy, ecosystem and addresses issues of corporate social responsibility.

Tesla Inc. Report 2018

[1] Hull, D. & Pogkas, D. (2018) “Elon Musk Doesn’t Work Alone. These Are Tesla’s Other Key Leaders” Bloomberg, Available at: https://www.bloomberg.com/graphics/2018-tesla-org-chart/

[2] Higgins, T. (2018) “Tesla CEO Musk Says Company Is ‘Flattening Management Structure’ in Reorganization” The Wall Street Journal, Available at: https://www.wsj.com/articles/tesla-ceo-musk-says-company-is-flattening-management-structure-inreorganization-1526308678

[3] Korosec, K. (2018) “Elon Musk Is Restructuring Management at Tesla” Fortune, Available at: http://fortune.com/2018/05/14/elon-musk-restructuring-management-tesla/